ABC Company has the following information related to class 10 assets for the current year: Beginning...
ABC Company has the following information related to class 10 assets for the current year:
Beginning Balance: $152,000
cost of additions: $12,000
Dispositions proceeds:$40,000 (original cost equals=$60,000)
The class 10 rate is 30%. Using only this information, what is the maximum CCA deduction for the current year for class 10 assets?
Choose the correct answer.
A) $33,600
B) $37,200
C) $45,600
D) $35,400
Homework Answers
Opening Balance = $1,52,000.00
Additions = $12,000.00
Disposition proceeds = $40,000.00
Tax Rate = 30%
Therefore,
Maximum CCA deduction for class 10 Assets :
($1,52,000+$12,000-$40,000)*30% = $37,200.00
Note : The original cost of disposition proceeds is not relevant for calculation of CCA.
Add Answer to:
ABC Company has the following information related to class 10
assets for the current year:
Beginning...
Javan Co has the following related to Class 8 assets: Beginning Balance: $40,000 Javan disposes of...
Javan Co has the following related to Class 8 assets: Beginning Balance: $40,000 Javan disposes of all assets within the class during the year, for proceeds of disposition of $20,000. If Javan Co has no additions for the year, and there are no assets remaining in the class at the end of the year, which of the following will occur? Choose the correct answer. A. a terminal loss of $20,000 B. recapture of $20,000 of CCA C.recapture of $16,000 of...
You are provided with the following information related to Class 14.1 (assume the opening UCC balance and all transacti...
You are provided with the following information related to Class 14.1 (assume the opening UCC balance and all transactions relate to a period of time subsequent to January 1, 2017): •Balance at beginning of the year: $58,000 •Purchased goodwill during the year for $12,000 •Sold various intangible properties included in Class 14.1 for $31,000 (assume original cost of disposed property is greater than proceeds of $31,000) What is the maximum CCA in the year? Choose the correct answer. A. $2,730...
Taxation rules of Alberta Canada. ACTIVITY 4: Recapture Example Two assets in class 8 (20%) with...
Taxation
rules of Alberta Canada.
ACTIVITY 4: Recapture Example Two assets in class 8 (20%) with an original cost of $50,000 each. Opening UCC for the class is $36,864. (a) Sell One Asset For $40,000. What is the tax consequence of this sale? (b) Sell One Asset For $60,000. What are the tax consequences of this sale? 1/2 Year Rule Subject to CCA Class No. UCC Additions Disposals Balance Rate % CCA UCC
Thompson Enterprises Ltd. has taxable income of $100,000 before deducting CCA and taking account of the...
Thompson Enterprises Ltd. has taxable income of $100,000 before deducting CCA and taking account of the following transactions. 1) Sold land for proceeds of $300,000. Thompson paid a 5% real estate commission on this sale. The land had an adjusted cost base of $175,000. Assume a capital gains inclusion rate of 50%. 2) Purchased class 8 assets (CCA rate of 20%) for a total cost of $50,000. Sold class 8 assets, which had an original capital cost of $40,000, for...
ABC Corporation, a calendar-year C corporation, sold several business-use assets during the current year. Information regarding...
ABC Corporation, a calendar-year C corporation, sold several business-use assets during the current year. Information regarding the asset sales is provided below. The company purchased these assets more than one year ago. The building and warehouse were depreciated using the straight-line method. In the table below, enter the following: 1. amounts of recognized gain(loss); 2. Section 1245 and 1250 recapture; and 3. Section 1231 gain (loss) for each asset sold during the year. Enter gains as positive amounts and losses...
Required information Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore $179...
Required information Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1. Table 2 and Table 5.) Asset Machinery Computer equipment Used delivery truck Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 72,000 $ 12,000 $ 25,000 $152,000 $ 261,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new...
3. The following information is for the year 2018 for ABC and XYZ, which are in...
3. The following information is for the year 2018 for ABC and XYZ, which are in the same industry. ABC XYZ RM RM Current assets 20,000 75,000 Non-current assets 40,000 140,000 Current liabilities 8,000 60,000 Non-current liabilities 20,000 130,000 Sales 200,000 850,000 Net income 4,000 10,000 (a) Compute the following: (i) Current ratio (ii) Debt ratio (iii) Return on sales (iv) Asset turnover (v) Return on equity (b) Give a brief explanation of the interpretation of the above calculated ratios.
Vanier Corporation reported the following information at the beginning of its current fiscal year: Deferred income...
Vanier Corporation reported the following information at the beginning of its current fiscal year: Deferred income tax asset (warranties) $ 2,400 (dr) Deferred income tax liability (depreciable assets) 10,500 (cr) During the year, Vanier reports the following information: -Pre-tax income was $850,000 and the tax rate was 32%; -Depreciation expense was $75,000 and the CCA was $80,000. The carrying amount of property, plant, and equipment at the end of the year was $420,000 while the UCC was $380,000; -Warranty expense...
Vanier Corporation reported the following information at the beginning of its current fiscal year: Deferred income...
Vanier Corporation reported the following information at the beginning of its current fiscal year: Deferred income tax asset (warranties) $ 2,400 (dr) Deferred income tax liability (depreciable assets) 10,500 (cr) During the year, Vanier reports the following information: - Pre-tax income was $850,000 and the tax rate was 32%; -Depreciation expense was $75,000 and the CCA was $80,000. The carrying amount of property, plant, and equipment at the end of the year was $420,000 while the UCC was $380,000; -...
Vanier Corporation reported the following information at the beginning of its current fiscal year: Deferred income...
Vanier Corporation reported the following information at the beginning of its current fiscal year: Deferred income tax asset (warranties) $ 2,400 (dr) Deferred income tax liability (depreciable assets) 10,500 (cr) During the year, Vanier reports the following information: -Pre-tax income was $850,000 and the tax rate was 32%; -Depreciation expense was $75,000 and the CCA was $80,000. The carrying amount of property, plant, and equipment at the end of the year was $420,000 while the UCC was $380,000; -Warranty expense...
Taxation
rules of Alberta Canada.
ACTIVITY 4: Recapture Example Two assets in class 8 (20%) with an original cost of $50,000 each. Opening UCC for the class is $36,864. (a) Sell One Asset For $40,000. What is the tax consequence of this sale? (b) Sell One Asset For $60,000. What are the tax consequences of this sale? 1/2 Year Rule Subject to CCA Class No. UCC Additions Disposals Balance Rate % CCA UCC
Required information Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1. Table 2 and Table 5.) Asset Machinery Computer equipment Used delivery truck Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 72,000 $ 12,000 $ 25,000 $152,000 $ 261,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new...
3. The following information is for the year 2018 for ABC and XYZ, which are in the same industry. ABC XYZ RM RM Current assets 20,000 75,000 Non-current assets 40,000 140,000 Current liabilities 8,000 60,000 Non-current liabilities 20,000 130,000 Sales 200,000 850,000 Net income 4,000 10,000 (a) Compute the following: (i) Current ratio (ii) Debt ratio (iii) Return on sales (iv) Asset turnover (v) Return on equity (b) Give a brief explanation of the interpretation of the above calculated ratios.
Vanier Corporation reported the following information at the beginning of its current fiscal year: Deferred income tax asset (warranties) $ 2,400 (dr) Deferred income tax liability (depreciable assets) 10,500 (cr) During the year, Vanier reports the following information: - Pre-tax income was $850,000 and the tax rate was 32%; -Depreciation expense was $75,000 and the CCA was $80,000. The carrying amount of property, plant, and equipment at the end of the year was $420,000 while the UCC was $380,000; -...
Most questions answered within 3 hours.
-
Brown Corporation makes four products in a single facility.
These products have the following unit product...
asked 4 minutes ago -
20% of all customers subscribe to phone service.
70% of all customers subscribe to internet service....
asked 20 minutes ago -
Write a program to solve the Josephus problem, with the following
modification:
Sample Input:
./a.out n...
asked 3 hours ago -
At the start of a CD it is spinning at a rate of 525 rpm
(revolutions...
asked 3 hours ago -
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 4 hours ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 6 hours ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 5 hours ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 5 hours ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 6 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 7 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 7 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 7 hours ago